Archive | Speculating

In speculative trades investors must sell to take profits before buyers lose interest.

Speculation: big risk – huge return

A large risk, even the chance of a possible total loss of an investment for a potentially huge gain defines speculation. Investors can speculate on any company from the largest to a tiny startup. The odds and gains reach the most extreme among the junior and startup companies. By discussing this topic I hope to make beginning investors aware of the extreme and very real risk of total loss. No beginner should consider or have anything to do with any speculative investing play.

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5 Basic Investing Strategies, Income, Value, Growth, Trading and Speculation. Each offers a different risk/reward tradeoff.

Choose from 5 Money making investing strategies

Classifying investment strategies into five broad groups arranged low to high risk, Income, Value, Growth, Trading, Speculation, helps new investors understand some of their many investment choices. Choosing from these investing strategies can set you on the path to financial security. While there are numerous variations within each broad strategic group; no strategy offers the impossible: risk free investing.

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Always seek the minimum positions for affordable costs.

Costs drive investor position sizes

Costs drive investor position sizes. Minimum positions for affordable costs keep costs per share low. Investors know minimum position sizes for affordable costs. This second sizing factor gets the transaction costs right. This effectively puts a financial barrier or threshold in place for owning an individual share position.

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Investing studies and holding counts suggest 16 stocks as the ideal

Investing academics and holding counts

Investing academics and holding counts in multiple studies conclude 16 stocks are the ideal number, with 5% to 7% of a portfolio held in each position. The range is surprisingly narrow. Most suggest between 15 and 20 stocks as the best number. You and your top research assistant, Google, can find endless numbers of studies.

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5 Factors - how many stocks to hold?

5 Factors – how many stocks to hold?

Considering how many stocks to hold ranges between 5 to 30 stocks with an exception. There are 5 Factors to consider: Number of holdings, Size of positions, Diversification, Risk and Psychology. This post is part 1 of the 6 part White Top View series, Introductory Portfolio Management – Counts and Sizes.

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Sorting The American OTC Stock Markets

Sorting American OTC Stock Markets

Sorting American Stock Markets On the OTC Market you can buy stocks in about 10,000 mostly small companies or startup ventures from broker-dealers in the OTC Markets Group. So named as the Over The Counter market. Headquartered in New York but using a distinct operating model that spans the US.

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Trading in the middle again: investor thinking

The trading approach to the stock market lies in the middle of the risk spectrum while overlapping the other basic approaches. That puts it between a conservative investing strategy based on profit making companies and aggressive speculative strategies. For consistency we will refer to all plays that accept high risk seeking significant short term rewards […]

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